Austal downgrades US shipbuilding margin

Austal has downgraded its EBIT margin for US shipbuilding to between 4.5% and 6.5% due to lower than expected applications of productivity enhancements from LCS 6 to LCS 8 and 10.

Austal chief executive officer Andrew Bellamy said while there were flow on effects from LCS 6 onto LCS 8 and 10, vessels at earlier stages of construction would benefit from the lessons learnt on LCS 6 to increase future US shipbuilding margin.

Another major vessel program at its US shipyard, the expeditionary fast transport program has reached construction program maturity, with shipbuilding margin stable.